Bush makes another brilliant move - catering to the corporations with a slap in the face to disaster survivors!
President Bush yesterday suspended application of the federal law governing workers' pay on federal contracts in the Hurricane Katrina-damaged areas of Alabama, Florida, Louisiana, and Mississippi. The action infuriated labor leaders and their Democratic supporters in Congress, who said it will lower wages and make it harder for union contractors to win bids.
The Davis-Bacon Act, passed in 1931 during the Great Depression, sets a minimum pay scale for workers on federal contracts by requiring contractors to pay the prevailing or average pay in the region. Suspension of the act will allow contractors to pay lower wages. Many Republicans have opposed Davis-Bacon, charging that it amounts to a taxpayer subsidy to unions.
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AFL-CIO President John J. Sweeney denounced the Bush announcement as "outrageous."
"Employers are all too eager to exploit workers," he said. "This is no time to make that easier. What a double tragedy it would be to allow the destruction of Hurricane Katrina to depress living standards even further."
» Bush Suspends Pay Act In Areas Hit by Storm
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